If HBD exceeds the target value, the stabilizer sells HBD to try to reduce the value, which also generates a profit for the stabilizer and the profit is returned to the DHF. If the value is more than $1.05, the stabilizer will also start to convert HIVE into HBD, which removes HIVE from circulation and also produces more HBD which can be sold at a profit (as above).
Anyone with a Hive wallet and their own coins can also do this, taking advantage of the imbalance to potentially generate a trading profit, but the stabilizer does it using DHF funds, all of which are then returned.
I guess everything is to keep balance in hive for better growth, now i see the need for such technology
Sometimes the HBD price is in the range of $1.10 - $1.20 for a long time. What is the reason for this? Is the HBD stabilizer not doing its job at that moment or are the witnesses entering the hive price with a delay?